When an accountant negligently prepares a financial statement knowing that the client intends to use it in obtaining a loan from a bank, the accountant will be liable to whichever lender actually makes the loan under the __________rule

A) known user
B) contact
C) foreseeable user.
D) privity


C

Business

You might also like to view...

The amount a company would pay to acquire an asset it now holds is the asset's

A) ?historical cost. B) ?current replacement cost. C) ?current exit value. D) ?present value.

Business

________ occurs when someone voluntarily offers payment to get an illegal advantage

A) Nationalization B) An economic sanction C) Bribery D) Expropriation E) Extortion

Business

A state court cannot exercise jurisdiction over property located within the state's boundaries regardless of the property owners' location.

Answer the following statement true (T) or false (F)

Business

You have purchased a Treasury bond that will pay $10,000 to your newborn child in 15 years. If this bond is discounted at a rate of 3.875% per year, what is today's price (present value) for this bond?

A) $8,417 B) $8,500 C) $5,654 D) $10,000

Business